The introduction of Ethereum layer 2s has eliminated the need for Buterin to pay more than $800 for a privacy-preserving transaction, as it did in the past.
After stressing the importance of the Ethereum ecosystem’s decreasing transaction fees, Vitalik Buterin gave a retrospective on some of the most well-known songs with a crypto theme from the past.
Regarding the development of the cryptocurrency market, Buterin pointed out that one of the primary obstacles to widespread adoption was the high transaction costs in the past.
Vitalik, speaking at Token 2049 in Singapore, stated that transaction fees on Ethereum layer-2 (L2) networks have decreased to “basically zero,” a significant turning point for the cryptocurrency.
“From being somewhere between $10 and $0.50 to being under $0.01, basically zero. At the same time, Optimism and Arbitrum, two major Ethereum layer twos, have hit this important security milestone… So rollups are rapidly becoming safer and rollups are finally affordable.”
In the past, high-priority Ethereum transactions during peak network congestion resulted in transaction fees, or gas fees, that might reach over $200. By shifting some of the transactions from the Ethereum mainnet to the secondary chain, L2 networks are necessary to reduce costs and increase the scalability of the mainnet.
Buterin claimed he was previously required to shell out more than $800 in transportation costs for a solitary transaction that protected his anonymity.
Buterin lists faster Ethereum confirmation times and lists popular cryptocurrency theme tunes.
In addition to the declining L2 transaction costs that increase cryptocurrency usability for regular transactions, Ethereum’s confirmation speed experienced a notable enhancement.
Thanks to the Merge, which made Ethereum a proof-of-stake network in September 2022, the transaction completion speed on Ethereum significantly improved.
Buterin clarified:
“One of the things that the merge did is it also cut in half the average waiting time until the next block. And so with both of those things, actually these days I quietly have my transactions confirmed in 5 to 15 seconds.”
To the joy of cryptocurrency fans, Buterin also paused to consider some of the most well-known anthems from earlier blockchain initiatives.
The crypto sector must continue to be decentralized while meeting the requirements of the general public.
In the future, Buterin pointed out, the sector must preserve the decentralized spirit while meeting the needs of mainstream customers.
Buterin pointed out that to preserve decentralization, we must aim for both industrial practicality and
“We need to satisfy the needs of mainstream adoption, and we need to hold on to open source and decentralization values, at the same time.”
Ultimately, Buterin pushed industry players to pursue workable solutions that support the upcoming wave of widespread adoption without compromising the intrinsic decentralization of the sector.